economic news last week, which pushed rates slightly higher and then another surge this week with the adp jobs report, so the bond markets were in a defensive position today. matthew graham at mortgage news daily told me bond traders got exactly what they expected. still, rates are decidedly higher now from where they were last week. what does that mean for housing. affordability is shrinking no question with rising home prices. that's the bad news. the good news in the jobs report is this. residential construction jobs grew in november taking the biggest monthly jump since july. more younger americans ages 25 to 34, first-time home buyers, went back to work after a dip in october although their emts employment is way too low. job growth in clobbered metros, those hard hit by the housing crash was ahead of national growth. that will help slow foreclosures further and boost home buying. hate to say it, tyler and sue, rates will not go much lower. they will likely go higher. >> diana olick in washington, thank you. >>> and while washington focuses on the budget, wall street sets its sites o

adp unless you want to poo-ppoo how that's grated is a pretty good number. and yet, stocks fall. that sort of good news is bad news thing which i have to imagine is driving our viewers, your clients, the guy on the street, insane? >> i mean listen, the idea is obviously the economy gets better the odds of a reduction? asset purchases in december goes up, yields should go up and stocks down in a short term. taking a step back from the fed december meeting, no one thinks as the economy gets better and fed pulls back they're going to be able to thread this needle perfectly and no reaction in risk assets whatsoever. the question is whether or not the reaction is appropriate and more importantly sustainable. once this dislocation, people move past nervousness about the fed, once that all runs its course, the bias remains to the upside for the economy and stocks. >> diane, what your expectations throughout the december fed meeting? does anybody think anything is going to happen then sp. >> i think the fed is going to set the stage for the tapering process. they're nervous about the ass

that's according to an adp estimate and well above expectatio expectations. good news in the real economy could make the fed take off the training wheels. signs of recovery could pressure the federal reserve to start pulling back its $85 billion monthly stimulus program. the fed just released its beige book. it shows modest to moderate growth. finally, there are some concerns that holiday retail spending is off to a slow start. mean while, president obama turned from health care to the economy offering what the white house billed as a major address on american unequality. some are calling it a early preview of the state of the union and the upcoming initiatives to help the middle class. >> while we don't promise equal outcomes we strive to driver equal opportunities. a grandson, a son, a father, as an american, is to make sure that every striving hard working optimistic kid in mark has the same incredible chance this country gave me. over the course of the next year and rest of my presidency, that's where you should expect my administration to focus all of ou

we had the adp report on wednesday, which suggested that type of number, as well as initial claims that came out today. they suggested a robust number. >> how does a good job summer fit into your view of the economy and ultimately how the fed under janet yellen is going to respond to changing conditions? >> it may allow them to begin to mentally talk -- it may allow them to begin to talk about tapering and even tapering. december is up for grabs. fedfed once out -- the wants out. many hawks and even some dust, bill dudley of the new york fed ind there is no risk quantitative easing from credit risk. there is risk from the standpoint of our balance sheet. if interest rates rise, we may be at risk from the standpoint of capital losses as opposed to capital gains. out and they need to replace it with a forward that allowsicy investors to be confident that things are not going to change -- change so much . >> why are you so certain they want now? it should not last forever, do you perceive they are concerned about the asset valuations that quantitative easing has driven? or are they concern

the consensus seems to be, when take the private adp report and the services data which was a little bit weaker, the market is already pricing in something north of 200,000. it is going to be one of those days when the good news plays in. gdp numbers were pretty good. home sales also rebounding quite nicely. exports doing very well. for me it is about velocity. and volatility coming into play as well. velocity because this year is going to be the best year since 2005. the average growth over the years, 186,000 -- it comes down to the quality of the jobs and that is possibly what is going to be reflected on more so. are market pricing in a treasury report? >> have a look at the 10 year government bond yield. near three-month highs. what you're getting towards is of 3% whichd level you last saw on the sixth of september. really, this is where it begins to play in. we are only one good payrolls number away from a complete unwinding of the bond market. that is quite a significant statement. that 3% level is going to be critically important. traders are getting ready for more volatility.

the adp national employment report which measures private employment says small businesses led the way in job creation with 102,000 jobs this november. thank you. >> there's never enough jobs. so i'd like more jobs. we'll cut it down to the wire. >> thank you, mr. chairman. having just looked at those employment statistic, considering we need to be around 300,000, 350,000 creation every month, we're still devastated, upsidedown when you look at our workforce participation. because we're up against the clock, i'm sure the chairman will hand you some time when we're done. >> is it bogardus? am i even close? >> bogardus. >> bogardus. just because i've heard some of the discussion, you've already explained it twice, i don't want to ask you to do it again the third time, on the aggregation rule, how different these aggregation rules are in regards to what you're seeing in the new health care law compared to what we do -- have done in the past in pension and tax and mechanics. can you sort of help explain some of the healthcamechanics a they're different. >> i may yield some of this question

the adp payrolls number came in over 200,000, and that surprised people. factor in revisions, and we could see 50,000 or 60,000 additional jobs added. bettingld have people on the fed starting to buy what buys in bonds.-- cars. rates on homes and the fed surprises by not tapering after the weak job report in september. talked back oner the table. >> doesn't the fed have a target for the unemployment rate? >> yes, and no. ring does notape -- tightening. then implement number does not mean as much because it was distorted by the government shutdown. it will come down, but it will not be a factor for the fed air it said officials have told me -- that. -- said. fed officials have told me it will not be dependent. fourth-quarter gdp is tracking much lower, around 1%. they want evidence we will not see a fallback in job creation. we do not have a lot of data before that meeting to prove it. but i want consistency -- >> they want consistency. q i, michael mckee, our onomics editor -- thank you, michael mckee, our economics editor. and shaking, eddie lampert, it's

the monthly adp report will be out on wednesday morning why the gulf's november jobs report is set for saturday morning. 173,000 new private sector jobs expected, while they expect friday's numbers to show 180,000 new nonfarm jobs. >>> a deadly derailment in new york. four people were killed, more than 60 injured after a metro north commuter train derailed in the bronx. mary thompson on the scene and will bring us an update in a couple of minutes. >>> also in our headlines today, the global headlines, iran is saying it wants stronger cooperation with saudi arabia. it's trying to ease concerns about a potential resurgence and influence after a deal with arab powers. some proliferation experts are worried the deal could fuel the spread of dangerous technologies across the middle east and asia. saudi arabia could seek to buy nuclear weapons if more isn't done to stop iran. today's guest is bob kerry who served on the intelligence committee when he was in office. and it's great to have you here today. we have a lot of things to talk about. but we want to get you thoughts about what happene

gained access to user pass words to 100,000 websites including facebook google twitter, linked in and adp the payroll company. it may still be underway. >>> mexican security forces are standing guard over a payload of dangerous radioactive material. stolen then found two days later north of mexico city after thieves abandoned the supply. this is raising concerns about the concerns of nuclear materials. john miller former fbi assist and director, good morning. >> good morning. what happens here? >> a truck with radioactive material is stolen. yesterday they come up you with the truck without the material. then they find the material a short distance away giving off radioactive material the. it does not look like terrorists. looks like thieves were in the knuckle head zone and thought they were going to get a truck with a piece of valuable kwoimt equipment. they could end up in a hospital or dead. >> even though it may be knuckle head, how dangerous is cobalt 60? >> this is the thing hospitals use in radiation therapy for x-raies and things like that. half life of 2.7 years. >> could you ma

also targeted, the payroll service company adp. meaning some workers' paychecks may have been exposed as well. so, what can you do? you can update your anti-virus software. and change your password. the most common password of hacked accounts is 123456. can't imagine why. >>> thousands of workers at fast food chains such as mcdonald's and burger king are walking off the job today, demanding pay raises. but the question this morning, how much would an increase in their pay end up costing you, the consumer. abc's rebecca jarvis here in new york, with some insight there. good morning to you, rebecca. >> reporter: hi, josh. good morning to you. a typical fast food worker in america makes about $9 an hour. but even those who support their efforts to increase their wages say that that would increase, if they were to increase those wages, that would increase the price of fast food by 20% if these workers were to get what they want. protests across the country this morning. scenes like this in new york, expected in 100 cities, including ch

in a separate report the payroll processor, adp says the private sector job growth last month was the strongest of the year. ♪ got to get up while we're young ♪ ♪ cause tramps like us, baby, we were born to run ♪ >>> own a piece of the boss, bruce springsteen's "born to run" machinuscript goes on the auction block next hour. sotheby's new york expects it to bring in $100,000. ♪ $5,000 and a car, that's the offer toronto mayor rob ford reportedly made in exchange for the tape that authorities say shows him smoking crack cocaine but the mayor denied those allegations this morning on the radio. >> number one, that's an outright lie and number two, you can talk to my lawyers about it but i'm here to talk about football and other things. if you want to talk about other things unfortunately i have to let you go. >> obviously he was on a sports radio station. there are also allegations that the mayor left his cell phone at that crack house and thank then had a driver try to get it back by offering the dealers inside that house marijuana. one more thing, allegations of heroin use, t

if you look at adp numbers and gdp people point out the flaws in this data with regard to consumption numbers and inventories humiliation interest rates are rising and if you look at two sings that started happening when the market turned down financial started to roll over and a ten year treasury and 30 year treasuries started to rise and those are two things that are important in the near term to the market and look like they could have farther to go so that means between now and the fed meeting you will see a bit more on the downside because it doesn't seem to be any sign of fear, just a drying up of buying and no one cares at this point but the market here is starting to pick up a little steam, not nearly the extent we saw in europe. they are down 5% and what you saw in the nikkei over the last couple days. slowly but surely we will pick up and joined these other indices. we have a correction which a lot of people have been waiting for for some time. in the latter part of december it is tough to fight the uptrend and that is the bottom line, we are still in an uptrend so these pul

this job report we have, we saw the adp report better than people expected and i will use two numbers actually i would use if i was arguing and disagreeing with you. in manufacturing from 40.9-41 hours. the productivity by keeping people unemployed will not be there much longer. people have to get hired. doesn't that indicate a higher gdp? >> you are right. the only thing is 3.6% gain in the third quarter, and a half of it or more than half with inventory and that is going to reverse in the fourth quarter so between that reversal and the shut down, is going to get the low gdp. what you should be doing is averaging the two quarters together, you come up with a number close to that trend but optically it will be hard to have the fed paper and while they're talking about a decision to taper, we get news the gdp looked awful. that is tough. adam: why do you say march as opposed to june. give a couple of meetings to get ready for the questions and the explanation, wouldn't that make our sense toward the summer? >> it would. but if the economy continues to show resilience, and then if they

if the number is anywhere close to that, based on adp and ism, i think we're at a bit of a dud. any type of sell-off i would probably be looking to buy on weakness because we've seen the fed when the s&p sells off, they back off taper talks. so i would be willing to step in. >> steven, come in here. dollar trade again? >> look, i think the numbers are likely to be firm. i agree with mark, unless it's a real blowout number that panics the market, the market will be able to deal with it and the fed will be giving a light taper. so say on any number below 225,000, i think the dollar against the yen will be good. i think the dollar against the aussie, the dollar against the canadian dollar will do just fine. the key, i think, is that the market continues to believe that the policy rates will be low for the extended period and volatility remain low. >> thank you so much for joining us, gentlemen. mark sebastian and our guest host, steven englander, at citi. and that's all for today's show. i'm karen tso. thanks for watching "worldwide exchange." ♪ that's mine. that's mine. ♪ come

if it is not successful, and we are not able to do it, and we have to move to adp ko, and then upgrade to the number of troops that we have on the ground, but what we have on the ground now is what we have to work with. pko, it would a d take us months to get it on the ground, so the u.n. has the authority to start the planning, in the meantime we are working forward on addressing the security issues. might for both of you, two questions -- what are the repercussions for regional spillover in terms of interests? chad in particular appears to be playing a prominent role, but the president's intentions are not clear. my last question would be what role has the atrocities prevention board played with the u.s. government in terms of elevating the level of focus and priority being paid to the c.a.r. issues, and what does that tell us going forward? >> it is clear that all of the regional neighbors of c.a.r. have some interest, and we do not know exactly what those interests are, and what roles they will be playing. chad, in particular, we understand that a number of select troops came out o

the adp national employment report which measures private employment says small businesses led the way in job creation with 102000 jobs this november. thank you. >> there's never enough jobs. so i'd like more jobs. spent let's pass the legislati legislation. >> we will get it down to the wire. >> having just looked at those implement statistics, considering we need to be around 300,000, 350,000 creation every month we are still devastated, upside down. >> would the gentleman yield? >> no. >> just because were up against the clock. i'm sure the chairman will hand you sometime when we are done. isn't ms. bogardus? emmett even close? just because i've heard some of the discussion can get explained it twice. i don't want ask you to do it again the third time, on the aggregation rules, how different these aggregation rules are in regards to what you sing in the new health care law compared to what we have done in the past and pension and tax and mechanics. can you sort of the blame some mechanics and how they're different? >> i may yield part of this question to ms. walker asses on the tech

yesterday's adp number was good. jobless claims number this morning lower than expected. so tomorrow's number from the federal government should be very important. we'll keep an eye on that for you coming up here. >> also we've got a day of heavy hitters here. silver lake's glenn hutchins. he's launching his own center on fiscal policy and monetary policy. hr to get into with the legendary private investor in the news today as well. royal bank of canada ceo gordon nixon will join us. his form reported earnings. other big news, a long time chief executive stepping down next year. he's talking to us first to tell us why. >> a number of canadian bankers are stepping down. ceos of some of the big banks. we'll find out why. >>> also a story we've been covering here on closing bell all week. fast food workers striking today nationwide over low wages. yesterday you talked to the official from white castle who told us that raising the minimum wage to $15 would be catastrophic, leading to mass closings, workers who walked off their paying jobs today, their low paying jobs, are com

it might be adp tomorrow, might be bls friday. on detroit, there's a lot of stories out there. let's throw up the ambac. it gave up the roost a little bit after that 11:00 eastern ruling. if you look at a one-year chart you could see this ruling was built in and expected. if you're holding munis, don't despair. if citi going through bankruptcy can get their act together and see public pension and another contractual agreement not to be treated special, they might be able to get their house in order, which would be the best thing in the grand scheme of thing for muni holders. >> people are happy for the dvr to sewly review rick's answer to slowly unpack his answer. >> whether you have a pension bill or thinking of investing in municipal debt which has been hammered, meg, i wonder are you telling people to get involved to pick up some of the deals they can potentially get across this space today? >> the muni market they are more individual investigators. the muni market has been very robust very hard if you're going on the short end. you don't want to go long with rising interest

is it an adp? >> paychecks was donegraded talking about that $8 million in gm. gchl e's got a big pension liability. loolk that and that's one of my charitable trusts updwraded. >> you've been pu. the government then decided that jpmorgan was the poster boy. they're going to do quite well in this krirn. ffrm. >> i remember you saying you expected jpm to get a faster premium than -- >> i think they'll do better in this american. bank of america, no one really cares. brian moynihan, is he doing a good job? yes. he's doing a good job and i was critical of his regime and i'm not anymore. michael corbet is quietly doing a good job. >> you love to talk about the oils. >> lumber -- schlumberger is doing good. apple being down 2 with their cash hoard -- they're going to be able to make money off their cash. apple is now down one if you net it from when they got the china mobile deal. buy apple. watch these cloud stocks. if veeva is right, salesforce.com will break down off its high. all of the veeva system is balanced on salenumber the unemployment rate drop jason furma

. >>> in the private payroll firm, adp says 250,000 jobs were created in november. the firm revised upward the october number. >>> also on tap today reports on new home sales for september and october, increases are expected despite higher mortgage rates. mortgage applications fell last week because of a big drop in refinancing. >>> stock futures for higher for most of the mourning, but right now, dow futures are down 24 points. the dow jones industrial average falling below the 16,000 mark. the s&p is up. >>> european markets are down after three days of losses. japan lead the decline, falling more than 2%. chinese shares rallied on news of financial reforms in the region. >>> some of the world's biggest banks including citigroup and jpmorgan are being hit with $2.3 billion in fines for manipulating key interest rates. it's the biggest fine ever levied by the european commission. >>> news week is coming back from the dead. a new owner says it will revive the print version of the magazine. just last year, news weeks previous owner announced the 80-year-old publicati

adp says that small companies and businesses added 200 and 50,000 jobs, larger employers added 180 4000 jobs in october, much stronger than their initial estimate. numbers cover only private businesses and often deferred to the more our answer government report that comes out on friday. as for the trade deficit, congress says that it fell in october, helped by an increase that has lifted america next words to an all-time high. the trade gap narrowed to 40.6 billion from september, boosting economic group -- growth because it showed american companies were earning more from sales overseas while u.s. consumers were buying fewer products from foreign competitors. those are some of the latest headlines on c-span radio. >> c-span, we bring public affairs events from washington directly to you, putting you in congressional hearings, offering complete gavel-to-gavel coverage of the u.s. house. c-span, funded by your local cable or satellite provider, you can now watch us in high definition. [video clip] >> as we walk in there are all of these pamphlets about how the government is trying to tak